Celanese again raises July VAM prices in China

MOSCOW (MRC) -- Celanese Corporation, a global specialty materials company, has increased July list and off-list selling prices for Vinyl Acetate Monomer (VAM) sold in China, as per the company's press release.

The price increase is effective for orders shipped on or after 8 July, 2020, or as contracts otherwise allow, and is incremental to any previously announced increases.

Thus, July VAM prices rose for the Chinese region by RMB300/mt.

As MRC reported earlier, the company last raised its VAM prices for China on 1 July, 2020, by RMB700/mt.

According to MRC's DataScope report, April EVA imports to Russia dropped by 5,85% year on year to 3,050 tonnes from 3,250 tonnes a year earlier, and overall imports of this grade of ethylene copolymer into the Russian Federation increased in January-April 2020 by 1,55% year on year to 12,540 tonnes (12,350 tonnes a year earlier).

Celanese Corporation is a global technology leader in the production of differentiated chemistry solutions and specialty materials used in most major industries and consumer applications. Based in Dallas, Celanese employs approximately 7,700 employees worldwide and had 2019 net sales of USD6.3 billion.
MRC

MOSCOW (MRC) -- MEGlobal has announced its Asian Contract Price (ACP) for monoethylene glycol (MEG) to be shipped in August 2020, according to the company's press release.

Thus, on 13 July the company said ACP for MEG will be at USD590/MT CFR Asian main ports for arrival in August 2020, which corresponds to the level of July.

The August 2020 ACP reflects the short term supply/demand situation in the Asian market.

As MRC reported earlier, MEGlobal announced its July ACP for MEG at USD590/MT CFR Asian main ports, up by USD20/tonne from June.

MEG is one of the main feedstocks for the production of polyethylene terephthalate (PET).

According to ICIS-MRC Price report, in Russia, July formulae prices for contract customers were in the range of Rb65,000-67,500/tonne CPT Moscow, including VAT. Prices of material in the spot market remained steady last week, Russian producers continued to ship material from 20 tonnes at a price of Rb70,000-72,000/tonne CPT Moscow, including VAT.

MEGlobal is a fully integrated supplier of monoethylene glycol (MEG) and diethylene glycol (DEG), collectively known as ethylene glycol (EG).
MRC

MOSCOW (MRC) -- Taiwan’s Formosa Petrochemical Corp has shut a residue desulphurises (RDS) unit at its 540,000 barrels-per-day (bpd) Mailiao refinery after it was hit by a fire early on Wednesday, reported Reuters with reference to three sources close to the matter.

Mailiao is one of Asia’s 10 largest standalone refining plants. The sources said its no. 2 RDS, with a capacity of 80,000 bpd, had been affected by the fire.

Formosa spokesmen could not immediately be reached for comment.

Trade sources said the outage would hit output of low-sulphur residual fuels used either in blending, to make very low sulphur fuel oil (VLSFO) for bunkering, or fed into other secondary units for gasoline or gasoil production.

Formosa cut VLSFO exports this month as it stepped up production of gasoline and gasoil on improving margins, while VLSFO profits weakened, the sources added.

The unit had been restarted in May after completing maintenance.

The company also operates three crackers in Mailiao with a combined 2.935m tonne/year capacity, which are operating normally, market sources said.

As MRC informed earlier, Formosa Petrochemical plans to shut down its No.3 cracker in Taiwan for maintenance in mid-August, 2020. The 1.2-MMt/y No. 3 cracker is due to be offline until end-September.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.

Formosa Petrochemical is involved primarily in the business of refining crude oil, selling refined petroleum products and producing and selling olefins (including ethylene, propylene, butadiene and BTX) from its naphtha cracking operations. Formosa Petrochemical is also the largest olefins producer in Taiwan and its olefins products are mostly sold to companies within the Formosa Group. Among the company's chemical products are paraxylene (PX), phenyl ethylene, acetone and pure terephthalic acid (PTA). The company"s plastic products include acrylonitrile butadiene styrene (ABS) resins, polystyrene (PS), polypropylene (PP) and panlite (PC).
MRC

MOSCOW (MRC) -- Solenis says it has acquired Poliquimicos S.A. de C.V. (Mexico City, Mexico), a maker of water treatment chemicals for the Mexican market, said Chemweek.

Terms of the transaction, including purchase price, were not disclosed. Poliquimicos makes chemicals for customers in pulp and paper and other water-intensive industries.

"The acquisition of Poliquimicos will enhance Solenis’ direct sales channel in the Mexican market and improve our production capabilities in the region,” says Solenis CEO John Panichella. The location of the Poliquimicos production facility outside Mexico City, as well as the company’s position in the packaging market, give the acquisition further benefits for Solenis, according to Jose Armando Pinon Aguirre, vice president/Latin America at Solenis.

As MRC informed earlier, Solenis (Wilmington, Delaware) says it has signed an exclusive distribution agreement with Peter Greven (Euskirchen, Germany), a leading manufacturer of oleochemical additives. Under the terms of the agreement, Solenis will be the authorized distributor for Peter Greven's calcium stearate dispersions for paper coating applications in the EU, UK, and Russia.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC

MOSCOW (MRC) -- The diverging price spread between LPG and naphtha in recent weeks has incentivized South Korean petrochemical producers to partially switch feedstock from naphtha to LPG from July, reported S&P Global with reference to market participants' statement.

South Korean naphtha buyers Hanwha Total, LG Chem, Lotte Chem and YNCC have all purchased LPG to take advantage of the cheaper feedstock, company sources have confirmed in recent days.

"Most of the South Korean crackers have bought LPG," a South Korean naphtha end-user said.

LPG typically becomes economically viable as a steam cracker feedstock when its price is 90% that of naphtha, or lower. Steam crackers typically begin utilizing more LPG when it is USD40-USD50/mt cheaper than naphtha, sources said.

The physical spread between CFR North Asia propane and CFR Japan naphtha averaged 91.11% in June, while the spread between CFR North Asia butane and CFR Japan naphtha averaged 86.8%.

With LPG commanding a sizable discount to naphtha in June, South Korean steam crackers emerged to purchase July and August delivery LPG to lower dependence on the use of naphtha.

Naphtha supply has been tight for July and August delivery cycles, firming prices as few cargoes were available due to refinery run cuts and limited Western arbitrage shipments, market sources said.

South Korea's Yeochun NCC has bought two spot cargoes of butane for delivery over July and August, sources said.

Lotte Chemical has lowered its naphtha requirements for August and purchased additional spot LPG recently for its steam cracker in Yeosu, confirmed a source aware of the matter. The company's Yeosu facility is able to produce 1.18 million mt/year of ethylene and 550,000 mt/year of propylene.

LG Chem has plans to utilize more LPG for its steam crackers in July, at around 15,000 mt more than in June, confirmed a source aware of the matter. The company's Daesan and Yeosu steam crackers have ethylene production capacities of 1.27 million mt/year and 1.18 million mt/year, respectively.

Hanwha Total Petrochemical recently purchased an evenly-mixed cargo via spot tender for delivery over the second half of July. Hanwha Total has a propane cracker with an ethylene production capacity of 310,000 mt/year.

Petrochemical makers in South Korea and Taiwan are typically the first to capitalize on cheaper LPG as feedstock for cost advantage; however not all steam crackers can switch easily to using more LPG and some may require a steeper discount to make it viable, sources said.

As MRC wrote previously, on 4 March, 2020, Lotte Chemcial shut its naphtha cracker after an explosion at the plant in the southwestern city of Seosan, which injured 31 people. The explosion, which was triggered by a fire at a compressor in Lotte Chemical’s naphtha cracker at around 3 a.m. local time (1800 GMT), was soon contained and under control, the company said then in a statement. The cracker may resume production this October, although initially the restart was planned in a couple of weeks after the accident.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 595,170 tonnes in the first five month of 2020, up by 10% year on year. Deliveries of all ethylene polymers, except for linear low density polyethylene (LLDPE), rose partially because of an increase in capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market was 457,930 tonnes in January-May 2020 (calculated by the formula production minus export plus import). Deliveris of exclusively PP random copolymer increased.
MRC